Bloomberg Surveillance Bloomberg Surveillance TV: October 7th, 2025
Oct 7, 2025
R Kipp deVeer, Co-President and Partner at Ares Management, shares insights on private asset management and digital infrastructure. He highlights Ares’ strategic shift from lending to development while emphasizing the importance of selective building to prevent overcapacity. DeVeer discusses the growing access to private assets in retirement accounts and the U.S. remaining a top destination for investments. He also notes the recovery of real asset transactions, expressing optimism despite potential inflation challenges.
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Valuations Near Bubble Territory
- Equity valuations are approaching late-1990s tech-bubble levels with the S&P 500 forward P/E near 23.
- Strong earnings growth this year, driven by AI-related spending, supports higher prices but limits how much the multiple can expand.
Earnings, Not Leverage, Fuel The Rally
- The recent market rally is earnings-led rather than pure valuation-driven froth.
- AI capex is largely financed from corporate cash flows, reducing classic credit-fueled bubble risk seen in 1999.
Be Selective With AI Bets
- Be selective when allocating to AI-related names because circular revenue linkages can spook markets.
- Prefer firms with clear cash flows and hyperscaler customers rather than speculative entrants.